Rivne Customs stops adjusting declared customs value of imported fabrics

Customs issues: Valuation Rivne region

Subject of complaint: Rivne Customs Office of the State Fiscal Service (Rivne Customs)
Complaint in brief: On August 28, 2017, a Ukrainian manufacturer of upholstered furniture addressed the BOC with a complaint against Rivne Customs.
The Complainant reported that Rivne Customs did not accept the declared customs value (DCV) indicated in the accompanying documents for fabric imported from China. Instead, it applied another, higher price at which previous supplies from Poland were assessed.
The furniture maker did not agree with the overstated DCV. However, to avoid delays at Customs and promptly import its goods, the firm took the advantage of the “90-day procedure,” which allows the release of goods in free circulation while guaranteeing the payment of customs duties, in accordance with Customs calculations. At the same time, the importer may, within those 90 days, request an administrative adjustment to the DCV assessed by Customs.
The company then submitted to Rivne Customs confirmation documents, such as the sales contract, invoice and proof of transport costs, required for a customs value assessment based on the value of the contract. However, Rivne Customs did not change its assessment because it was unclear what is the procedure of payment for the delivered goods.
Actions taken: At the beginning of September, the BOC investigator sent a written request to the State Fiscal Service regarding the Complainant’s case. He also organized and personally participated in a meeting between the importer and Rivne Customs to identify the reasons for adjusting the DCV and to eliminate them. As a result of the meeting, the Complainant made changes to the sales contract that described the procedure for payment of the goods more clearly and confirmed the contract value.
Result achieved: Rivne Customs agreed with these clarifications, and stopped adjusting the DCV of the goods. The case was successfully closed.

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